June 17 (Reuters) - Tobacco giant Philip Morris

International ( PM ) said on Monday that it would suspend online

sales on Swedish Match North America's ZYN.com nationwide as the

Zyn nicotine pouch maker responds to a subpoena from the

District of Columbia (D.C.).

Philip Morris ( PM ) bought Swedish Match in a $16 billion deal in

2022 as the company looked to reduce its reliance on cigarettes

amid stricter regulations, and a consumer shift towards

alternatives to tobacco and traditional cigarettes.

The company said that Swedish Match North America had

received a subpoena from D.C.'s Attorney General requesting

information about its compliance with D.C.'s 2022 ban on the

sale of all flavored tobacco.

In October 2022, D.C. banned the sale of all flavored

tobacco, including flavored synthetic nicotine products.

Philip Morris ( PM ) said that it intends to comply with D.C.'s

request and that in the event of an unfavorable outcome related

to this matter, a material liability is reasonably possible.

The company said its preliminary investigation indicates

that there have been sales of flavored nicotine pouch products

in D.C., predominantly related to certain online sales platforms

and some independent retailers.

"Swedish Match is conducting a full review of its sales and

supply chain arrangements in D.C. and other U.S. localities

where flavor bans may apply and is temporarily suspending all

sales on ZYN.com until that assessment is complete," a Philip

Morris ( PM ) spokesperson told Reuters.

Philip Morris ( PM ) has benefited from strong demand for its Zyn

nicotine pouches in the U.S., which the company says do not

contain tobacco.

In its first quarter results, reported in April, shipments

of Zyn nicotine pouches grew nearly 80% compared with a year

ago. However, sales on ZYN.com represent a "very small

percentage of nationwide Zyn volumes," the company added on

Monday.